Catabasis board approves workforce reduction, shares down

Astria Therapeutics

07/12/2020 16:57

** Drug developer's  CATB.O  shares fall 5.7% to $1.81
    ** Co's board on Dec. 4 approved to cut workforce by about
48% to 16 employees - SEC filing (https://bit.ly/3onXHGG)
    ** Co says reduction part of restructuring, following
decision to stop activities related to the development of
edasalonexent, its treatment for Duchenne muscular dystrophy
    ** CATB earlier reported edasalonexent did not meet its main
goal
    ** Co expects restructuring to result in $2.8 mln in reduced
annualized workforce expenses
    ** Estimates incurring charges of $1 million from employee
severance, benefits and related costs in Q4 2020 and expects to
complete the staff cuts by end of the fourth quarter 
    ** CATB stock down ~69% so far this year

 (Reporting by Vishwadha Chander in Bengaluru)
 ((Vishwadha.Chander@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 80 6749 6132;))